I think one thing that has stood out in recent times is the failure of companies/products that have been endorsed by higher profile companies/sports teams/organisations/individuals. Seemingly with very little recourse. People have to understand the responsibility they are undertaking particularly when endorsing financial products.
It has really come to a head this week with the collapse of the FTX crypto exchange. There are ordinary people who will have lost fortunes. I understand that people always have to take responsibility for anything they are investing money in. That they should be doing due diligence. The problem though is when a Tom Brady or a Miami Heat or Mercedes F1 team or ICC give credibility to this company. You could reasonably expect these companies to do the due diligence required. That, if they are endorsing the product, with multi million pound deals over many years, that it would be kosher and above board. What is transpiring is very ugly. Red flags galore. Often sports people will just he happy to associate with any project their agent tells them to. Sit back and rake in the money. In this sort of instance I am not sure it’s good enough to just wash your hands of any association with the failed company.
We see it in betting all the time. The Gambling Commission has a hugely important role when it comes to issuing licenses. However, they have failed miserably at times with regard to this. I guess they will always be slightly conflicted when they earn revenues from licenses issued.
You only have to look at the stories this week relating to 8XBet who are Man City’s Asian betting partner. The company behind them has a license and the Gambling Commission is plastered all over their website. Teddy Sheringham is an ambassador. What could possibly go wrong? A founder who doesn’t seem to exist online, A CEO hiding behind a stolen avatar, a backstory that doesn’t align with publicly available records, LinkedIn lists just two employees neither of whom appear legitimate….
We have the problem in the betting industry with websites like Oddschecker. A new bookmaker appears on their site and we all just assume they have vetted the company properly. The harsh reality is very different. People have to realise that a new bookmaker being added to the Oddschecker matrix is an incredible money spinner for them, as very few people will have accounts with the said company. They are giving the new bookmaker credibility by adding them.
10bet is a good example of that. We have seen that adding these lesser bookmakers with very questionable behaviours just ends in tears for punters. The problem is that Oddschecker seems to avoid any criticism even when they have played a huge hand in it. We saw it with Racing Blogger and his association with Bet Bull. He has a massive reach in the Twitter betting circles. He endorsed that company and will have been paid handsomely. People will have opened accounts because he gave Bet Bull credibility.
We saw it with Football Index. Multiple shirt sponsorships. Well known ambassadors. Endorsement by regulators (Gambling Commission). Ended up a complete scam and some customers lost fortunes. Hundreds of thousands of customers involved. So little recourse.
Not all companies are going to be successful. Good ones can fail. However, do your own diligence. Do not assume because big names are associated with something that it doesn’t carry significant risks. For them it is simply about the money. They don’t care about the fallout that happens to real people. The regulators won’t protect you. Understand the risks. Trust no one. Be careful!
ProPunting 